Rhodia Launches Acetow Competitivity Improvement Program

Regulatory News: Rhodia (Paris:RHA) has launched an extensive program to improve the competitiveness of its Acetow cellulose acetate business. This activity, with production sites mostly situated in Europe, is particularly impacted by the weakness in the US Dollar. As a first step, an action plan was announced at the Freiburg site in Germany. Following an in-depth study, this plan targets cost savings in all processes through productivity gains in production, more efficient administration, support services, and a new orientation to Research & Development activities. As part of the restructuring program, 129 jobs will be cut, mostly through early retirement. Gérard Collette, the new President of the Acetow Enterprise, commented "The action plan we are launching aims to improve our margins to compensate for the unfavourable foreign exchange environment. It will help ensure the long-term competitiveness of Acetow as part of Rhodia’s core businesses and the sustainability of the Freiburg site.” Rhodia is an international chemical company resolutely committed to sustainable development. Leader in its businesses, the Group aims to improve its customers' performance through the pursuit of operational excellence and its ability to innovate. Structured around seven Enterprises, Rhodia is the partner of major players in the automotive, tire, electronics, perfume, health and beauty and home care markets. The Group, listed on Euronext Paris, employs around 16,000 people worldwide and generated sales of €4.8 billion in 2006. Rhodia Acetow, headquartered in Freiburg in Germany ranks among the three leaders in the market of cellulose acetate fibers for cigarette filters.